Encyclopedia > White knight

  Article Content

White knight

The term White knight can have several meanings.

The white knight is a chess-piece, often associated with the abstract battle of good against evil. This is the origin of most of the other meanings.


In business, white knight refers to a potential acquirer (firm that wishes to acquire ownership of another firm) of a firm. The intention of the acquisition is to circumvent the hostile takover of the target firm by a third firm, which is perceived to be less favorable.

For example:

Company A (Acquirer) is trying to acquire ownership of Company T (target) in order to stop Company H (less welcome) from acquiring ownership of Company T.

In this scenario, Company A would be acting as the white knight.


The White Knight is a character in Through the Looking Glass by Lewis Carroll. Based on the chess-piece, this character is a bumbling do-gooder with a penchant for useless inventions.



All Wikipedia text is available under the terms of the GNU Free Documentation License

 
  Search Encyclopedia

Search over one million articles, find something about almost anything!
 
 
  
  Featured Article
Wheatley Heights, New York

... are non-families. 13.0% of all households are made up of individuals and 5.2% have someone living alone who is 65 years of age or older. The average household size is ...

 
 
 
This page was created in 37 ms